Master X was introduced to the benefits of partnership of M/s ABC & Co. with the consent of all partners. After attaining majority, more than six months elapsed and he failed to give a public notice as to whether he elected to become or not to become a partner in the firm. Later on, Mr. L, a supplier of material to M/s ABC & Co., filed a suit against M/s ABC & Co. for recovery of the debt due. In the light of the Indian Partnership Act, 1932, explain: (i) To what extent X will be liable if he failed to give public notice after attaining majority? (ii) Can Mr. L recover his debt from X?
Answers
Answer:
Minors Admitted to Benefits of Partnership
As we have seen in the Contract Act, minors cannot be a party to a contract. A contract involving a minor is void-ab-initio. However, the Partnership Act has its own sets of legal rules regarding minors. So let us study about minor partner and the benefits they gain from a partnership.
Browse more Topics under The Indian Partnership Act
True Test of Partnership
Elements of a Partnership
Kinds of Partnerships
Types of Partners
Relation of Partners to One Another
Relation of Partners to Third Parties
Partnership Property
Rights of Outgoing Partner
Legal Consequences of Admission or Retirement of a Partner
Consequences of Non-Registration of Firm
Dissolution of a Firm
Consequences of Dissolution of a Firm
Partnership Act
Explanation:
As per the provisions of Section 30(5) of the Indian Partnership Act, 1932, at ant time within six months of his attaining majority, or of his obtaining knowledge. that he had been admitted to the benefits of partnership, whichever date is later, such person may give, public notice that he has elected to become or he has elected not to become a partner in the firm, and such notice shall determine his position as regards the firm.
However, if he fails to give such not, he shall become a partner in a firm on the expiry date of 6 months.
(i) He becomes personally liable to third parties.
(ii) His share in the profits and the property will remains the same to which he was entitled as a minor.